AS Business Studies - Measuring the effectiveness of the workforce

The formula's to calculate labour productivity, labour turnover and absenteeism.

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Labour Productivity

Labour productivity is calculated by:

1.  Output per employee =

 Value of output   /                                                                                                       Number of employees

  • The higher the figure the better

2. Labour cost per unit of output =

Total Labour cost /                                                                                                     Total value of output

  • The lower the figure the better
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Labour turnover

Labour turnover is calculated by:

Number of leavers per year  /                                                                                      Average number of employees x 100

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Absenteeism is calculated by:

Number of people absent on one day /                                                                        Total number of staff                             x 100

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Thanks this is really helpful!!!

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